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BOWALF - Breakout with ALF Filter

  • #1
  • First Post: Sep 17, 2010 6:47pm Sep 17, 2010 6:47pm
Ok, so I'm gonna stick my neck out and post my tweaks for the simple London breakout thread here. This thread wouldn't exist without the good work of everyone at:

A Simple London Breakout v2

ALF/TVI - Simple, effective daytrading

and:

Alf revisited

And my chat buddy Phreddy who guided me to the breakout thread...Thanks Phreddy!

Lets do this please: any questions about ALF or the BO system themselves should be researched in those threads. Ways to improve BOWALF should be posted here. Thanks.
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  • #2
  • Sep 17, 2010 6:54pm Sep 17, 2010 6:54pm
The indicator for the London BO places 5 take profits at fib levels of the breakout box range.

For Asian, the box is small therefore the TP are smaller and I enter as soon as the Entry Buy or Entry Sell line is crossed.

For London, the box is larger so I wait 10 tips pips into the move before entry to avoid false BO's.

I have backtested and traded:

GU at Asian session open
and
EJ or GJ at London session open.
Isolate yourself from the herd
  • #3
  • Sep 17, 2010 6:56pm Sep 17, 2010 6:56pm
ALF or adaptive Laguerre Filter is sort of an oscillator and can be traded like this: when price is above the ALF, treat like an oversold stoch and go long, when price is below the ALF treat like an overbought stoch and go short.

ALF works great on M15 with an MTF ALF set to H1 overlayed.
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  • #4
  • Sep 17, 2010 7:00pm Sep 17, 2010 7:00pm
Tick Volume Indicator colors the candles based upon the volume being traded up or down.

I am mostly using ALF to exit trades: in the BO system, the original exit is at the far side of the box, really painful if its a big box. I exit when I get a reverse ALF signal to my trade. This is a much tighter stop almost always.
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  • #5
  • Sep 17, 2010 7:02pm Sep 17, 2010 7:02pm
If I'm long and trade turns against me, I look for a red TVI candle crossing both m15 and h1 ALFS short and when it does, I close for a small loss. Vice versa and green candle for short trades.
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  • #6
  • Sep 17, 2010 7:04pm Sep 17, 2010 7:04pm
It seems you can get a higher hit rate if you have an ALF signal supporting your BO trade vs. if it is contradicting your BO trade. So for a long BO, its best if green candle has closed above both the m15 and h1 ALF, and also seems to be better if the lower TF ALF is leading the higher TF ALF.
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  • #7
  • Sep 17, 2010 7:16pm Sep 17, 2010 7:16pm
I know, I know I haven't posted any charts so here is my chart for London session GJ with the templates and indicators:

The box times are set differently for each template obviously and my broker is +2. Please don't ask how to set them for your broker! I could barely figure it out for my own
Attached Image (click to enlarge)
Click to Enlarge Name: gjlondon.gif Size: 33 KB
Attached File(s)
File Type: mq4 ALF-MTF.mq4   3 KB | 1,441 downloads
File Type: ex4 ALF.ex4   5 KB | 1,165 downloads
File Type: tpl bowalf_ejorgj_london.tpl   481 KB | 1,163 downloads
File Type: ex4 TVI_Candles.ex4   4 KB | 1,145 downloads
File Type: mq4 3 Tier London Breakout V.3.1.mq4   18 KB | 1,196 downloads
File Type: tpl bowalf_gu_asian.tpl   469 KB | 1,148 downloads
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  • #8
  • Edited 8:01pm Sep 17, 2010 7:23pm | Edited 8:01pm
I backtested this one month and was amazed. So I traded it live for three sessions this week and netted around 800 pips (this counting each TP as a separate trade). I think it should be studied further so I started this thread. I would be happy if people could improve it further, but puleeeez don't make it more complex. I can only trade simple systems.
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  • #9
  • Sep 17, 2010 7:37pm Sep 17, 2010 7:37pm
Entry at "Entry Buy".

At "Buy Target 1" closed 20% and moved SL to BE+1.

At "Buy Target 2" closed another 20% and moved SL to "Buy Target 1"

Trade reversed and the last 60% closed at "Buy Target 1"

Initial Lot size is much larger than normal so that each TP is considered a winning trade for that many pips - this also necessitated finding a better way to exit bad trades than SL set to the far side of the box - MUCH too painful for trading with larger lot sizes than I normally trade.
Attached Image (click to enlarge)
Click to Enlarge Name: EJ0915.JPG Size: 97 KB
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  • #10
  • Sep 17, 2010 7:48pm Sep 17, 2010 7:48pm
Reached TP 4
Attached Image (click to enlarge)
Click to Enlarge Name: ej09162010.gif Size: 53 KB
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  • #11
  • Edited 8:03pm Sep 17, 2010 7:58pm | Edited 8:03pm
Entry is at the buy and sell line with no buffer. For EJ and GJ London, I wait 10 pips more before entry.

Headfake for -80 (16 pips x "5" trades)

second trade +226, netted 146
Attached Image (click to enlarge)
Click to Enlarge Name: GUASIAN917.GIF Size: 33 KB
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  • #12
  • Sep 17, 2010 8:36pm Sep 17, 2010 8:36pm
thanks for sharing, can i know what time range you use in terms of gmt?
Quoting forexweasel
The indicator for the London BO places 5 take profits at fib levels of the breakout box range.

For Asian, the box is small therefore the TP are smaller and I enter as soon as the Entry Buy or Entry Sell line is crossed.

For London, the box is larger so I wait 10 tips pips into the move before entry to avoid false BO's.

I have backtested and traded:

GU at Asian session open
and
EJ or GJ at London session open.
  • #13
  • Sep 17, 2010 8:59pm Sep 17, 2010 8:59pm
Ok, remember that my broker time is +2

here are the screenshots of the indicator settings:

First picture is London open settings which I use on GJ/EJ, second picture is Asian open settins which I use on GU

Box size is set to 15 minimum, 100 maximum
Attached Images
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  • #14
  • Sep 17, 2010 11:22pm Sep 17, 2010 11:22pm
Hi FW, nice take on the '3t'.

Not a criticism, just an observation!
SLs are always a vexed subject! I have a chart that shows that if I adopted your 'saving' on SL, I would have lost the trade completly! It popped out and retraced 90%.

Having said that, if I had waited 10 pips before entering I would have made the trades!

Swings and roundabouts I suppose.

I don't expect to be posting here, I have adopted the original idea in its basic form...should qualify that. I am using the 3 trade version. Going live with it in October.
  • #15
  • Sep 17, 2010 11:40pm Sep 17, 2010 11:40pm
Wonderful adaptation to my London Breakout, congrats. I really appreciate your respect of my thread by opening this one yourself and I look forward to seeing it develop.
  • #16
  • Sep 18, 2010 12:17am Sep 18, 2010 12:17am
Nice. I like.
I have question though, do u make use of Mer's 3 open trades strategy?
Add value everyday in Pips
  • #17
  • Sep 18, 2010 2:00am Sep 18, 2010 2:00am
Quoting Phreddy
...I don't expect to be posting here ...
Hi again, I posted the above before I had read the thread...much impressed with the extras that you have added. I think that I must change to your system and find out about all those indies.

I need a lesson in closing out portions of trades!! Would a Mauro do that?
  • #18
  • Sep 18, 2010 6:13am Sep 18, 2010 6:13am
Hi Forexweasel,

Thanks for sharing your system. Breakout + ALF + MTF could be a very profitable mix.
I´ve downloaded template and indicators but TVI candles not appears, maybe because weekend and not live data ?

Thanks again
  • #19
  • Sep 18, 2010 7:24am Sep 18, 2010 7:24am
Thanks. we'll see if I wrecked a good thing or made a decent tweak soon enough. Thanks for making the original system - really rocks!

FW


Quoting mer071898
Wonderful adaptation to my London Breakout, congrats. I really appreciate your respect of my thread by opening this one yourself and I look forward to seeing it develop.
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  • #20
  • Sep 18, 2010 7:26am Sep 18, 2010 7:26am
EDIT:..OK, I think you have to reset the candle size and color every time, even if you set it before saving the template, tvi candles doesn't "remember" the settings. See if thats the problem
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